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Basic Question 1 of 7

Which of the following is not a step in hypothesis testing?

I. Stating the hypothesis
II. Identifying the test statistic and its probability distribution
III. Specifying the significance level
IV. Collecting the data and performing the calculations
V. Making the statistical decision
VI. Making the economic or investment decision

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain hypothesis testing and its components, including statistical significance, Type I and Type II errors, and the power of a test

CFA® 2024 Level I Curriculum, Volume 1, Module 8.